IMI triples 2014 profit to $29M

Last year was a “banner year” for Integrated Micro-Electronics Inc. (IMI), the listed semiconductor firm of the Ayala Group, as its profits nearly tripled from 2013 on strong global demand for its electronics chips and devices.

IMI reported net profit of $29.1 million in 2014, nearly triple the $10.5 million profit recorded in 2013, while revenue grew 13 percent to $844.5 million from $745 million.

“The year 2014 was a banner year for IMI as we outperformed the EMS (electronics manufacturing services) industry’s single-digit growth rate and our financial targets,” said IMI president and chief executive officer Arthur Tan.

“Our global presence and market diversity took advantage of the recovery of the international markets and electronics segments,” he said.

Revenue from local EMS operations reached $204.9 million, up 8.3 percent from the previous year as its storage device and automotive electronics businesses expanded.

Local subsidiary PSi Technologies Inc. likewise increased sales by 4.3 percent to $44.9 million from the previous year on increased demand for power semiconductors.

For its international units, IMI China generated revenues of $325.6 million, up 17.5 percent year-on-year, as the telecoms sector benefited from the country’s 4G rollout which led to increased demand for infrastructure devices.

Revenue at IMI Bulgaria grew 14.4 percent from a year earlier to $268.6 million on the back of a steady expansion in automotive production.

IMI currently has a presence in the Philippines, China, Bulgaria, Czech Republic, Mexico, the United States, and Singapore in different market segments — automotive, telecommunications, industrial, medical electronics and high-end consumer devices.

“IMI will continue on a profitable growth track as we continue to grab opportunities for high-value outsourcing in the telecommunications infrastructure, automotive, industrial, and medical electronics markets,” Tan said.

“IMI has been able to deliver on its long-term strategies and will continue to do so. We are a growth company playing in an industry that drives the global economy. The market for electronics is still underserved, and we have positioned ourselves in the right market segments,” he added.

Philippine operations accounted for 25 percent of IMI’s revenues while the rest were generated by its international units, particularly China and Singapore which contributed 39 percent and Europe and Mexico which contributed 32 percent.

IMI has allotted P1.2 billion in capital expenditures this year, which will be funded by the P1.6-billion proceeds of its follow-on offering in early December last year.

Started in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices.